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America’s retirement system is collapsing. And this can make it difficult to receive the retirement benefits you’ve worked so hard to earn.
Americans face some pretty tough challenges. The Social Security Trust Fund is underfunded. Medical costs continue to rise. Inflation has been high for too long and yesterday’s lows are unlikely to return. At this point, a tax increase is almost certain.
Research shared by The Wall Street Journal, Forbes, and Fox Business proves that this is taking a huge toll on all.
In a new ranking of global retirement systems, the United States received a C+, falling further behind the Netherlands, Australia, and Sweden. The United States ranked 22nd out of her 47 countries, a slight drop in score from a year ago.
-Wall Street Journal
Yes, America’s retirement system has been downgraded. You can take action now to secure your retirement savings, but it’s important to understand what we’re all up against.
Social Security is on life support
Social Security, once considered a lifeline for retirement income, is on the verge of bankruptcy. With an aging population and a shrinking workforce, this program is no longer sustainable, at least in its current form.
The most obvious problem is the impending shortage of the Social Security Trust Fund.of Congressional Budget Office It is estimated that the trust fund will be depleted by 2032, less than nine years from now. The newspaper said retirees’ benefits could be cut by up to 20% if the government doesn’t come to their rescue soon. American Academy of Actuaries.
Despite higher-than-average cost-of-living adjustments over the past few years, Social Security benefits still have lost 40% of their purchasing power since 2000, according to data released by the government agency. Elderly Federation, a bipartisan group. So over time, Social Security has become increasingly unreliable for retirees.
Higher taxes erode more of your savings.
As the government continues to spend, the U.S. national debt continues to grow.of Ministry of Finance It shows that it exceeded a record $33 trillion.
So what do you get when you have the highest national debt in history and the lowest federal income tax rate in 40 years? You have the perfect recipe for the government to raise taxes.
This is the scary part for retirees. All money you put into a traditional IRA or 401k is pre-tax. This means that when you start raising your taxes, the IRS is ready to pick up your cut. Tax increases can be especially devastating if you rely on your retirement funds.
These tax increases don’t just affect withdrawals from your IRA or 401K. It may also affect your Social Security benefits and other investment income.
Daily living costs are rising due to inflation
Inflation may be down from recent peaks, but that doesn’t mean Americans are out of the woods.
Inflation is often referred to as the “silent killer of retirement.” Even if inflation is low (1% to 2%), your purchasing power can be cut in half in just a few years.
Not only that, but its hefty price doesn’t go away either. The prices of everyday items today are much higher than they were a few years ago. As a result, retirees will have significantly less purchasing power to cover basic necessities and medical costs.
Rising medical costs
Many people believe that Medicare will cover all their medical expenses in retirement.
Unfortunately, that’s simply not true. Although Medicare covers some medical costs, you will still have to pay large out-of-pocket costs for things like dental, hearing, vision, and long-term care.
So even with Medicare, medical costs can be one of your biggest expenses in retirement.
According to some of the latest estimates shared by HealthView Service, a typical 65-year-old couple can expect to spend a total of $673,587 on health care costs during retirement. That’s a staggering number today. But medical costs are increasing much faster than the rate of inflation, so imagine what this number will be 10, 20, or 30 years from now.
take matters into your own hands
That is to say. We can’t just throw in the towel and give up. America’s retirement system may only give you a C+, but you can also aim for an A by solving problems on your own.
There’s a lot you can do, starting with making the most of all the benefits available to you.
One of the most important things BOSS advisors do for their clients is to help them get the most Social Security benefits they deserve. By submitting in the right way and at the right time, depending on the specific situation.
It is reported that 96% of Americans get this wrong and are losing an average of $111,000 in Social Security income as a result. forbes.
That’s why BOSS would like to offer you the customized BOSS Social Security Analysis for free.
This free analysis will help you identify exactly when and how to file for Social Security so you can get the most money from your benefits. It also considers the impact on taxes, spousal benefits, Medicare premiums, and more.
For many Americans, this is the single most important tool that helps ensure you get the maximum net income from your benefits.
The strategy we use is ideal for families who have $200,000 or more saved for retirement and have not yet filed for Social Security.
To learn how to squeeze every nickel out of your profits, click to schedule your free analysis. here.
BOSS Advisors has helped thousands of families maximize their Social Security benefits, and we’re confident we can help you, too.
About the author: Ryan and Tyson Tucker are presidents and CEOs of BOSS Retirement Solutions. They have won Utah’s “Best of State” award five times and have six offices throughout the Wasatch Front.
This is for illustrative purposes only and your results may vary. Advisory services provided through his BOSS Retirement Advisors, an SEC registered investment advisory firm. Insurance products and services offered through BOSS Retirement Solutions. The information contained in this material is for informational purposes only, and nothing contained herein constitutes tax, legal, or investment advice. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the specific needs of your individual situation. For legal and tax questions, you should seek the advice of an independent attorney or tax advisor. We are not affiliated with the U.S. government or any government agency. Marketing materials provided by Infinity Marketing Services.
